settlement timings, SEBI vide Gazette Notification dated July 3, 2026 carried out amendment to SEBI (Mutual Funds) Regulations, 2026 to permit intraday borrowings by mutual funds for various purposes.
Accordingly, in supersession of the guidelines on borrowings of mutual funds specified in clause 5.9.1 of the SEBI Master Circular for Mutual Funds dated March 20, 2026 and SEBI Circular no.
HO/(92)2026-IMDPOD2/I/7885/2026 dated March 25, 2026, SEBI vide this circular has specified the conditions including the purposes and the quantum of the intraday borrowings by mutual funds. Further, it is provided that Asset Management Companies (AMCs) shall be responsible for ensuring that intraday borrowings are repaid by end of the day and any intraday borrowings converted to overnight borrowings are within regulatory limits and for the purposes allowed in Regulation 42(1) of SEBI (Mutual Funds) Regulations, 2026.
This circular shall come into effect from September 1, 2026
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